Bank of America Corp (NYSE: BAC) may reduce its 34% stake in BlackRock, the largest asset management company in the world, according to a report from Bloomberg.
The Charlotte-based bank acquired the holding when it purchased Merrill Lynch in 2009, but the company has not reached a final decision on the matter, according to the report which cited people familiar with the matter. The report also said that no deal is imminent. Bank of America Corp (NYSE: BAC) currently has a value of $10.1 billion on the stake as of June 30th and a fair market value of $9.3 billion for the holding, according to a regulatory filing on August 6th.
Bank of America Corp (NYSE: BAC) has been selling a number of investments which have been deemed to be not critical to its retail banking, home lending, wealth management and capital markets operations. Merrill Lynch originally acquired 49.8% stake in BlackRock by trading its asset management businesses back in 2006. Through an exchange of shares, the holding was diluted in 2009.
During the last year, Bank of America Corp (NYSE: BAC) sold its stakes in Columbia Management Group, First Republic Bank, as well as stakes in Brazilian and Mexican banks and about $3 billion in private-equity holdings. The Charlotte-based bank is also selling its Balboa Insurance unit which it acquired through the 2008 purchase of Countrywide Financial Corp.
Bank of America Corp (NYSE: BAC) CEO Bryan Moynihan said on July 17th that BlackRock “is a great company and we are happy with it” when asked whether or not the bank would consider selling its stake.
Bank of America Corporation is a bank holding company, and a financial holding company. The Company is a financial institution, serving individual consumers, small and middle market businesses, large corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various nonbanking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and nonbanking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Banking, Global Markets, Global Wealth & Investment Management (GWIM), with the remaining operations recorded in All Other. On January 1, 2009, the Company completed the acquisition of Merrill Lynch.
Shares of Bank of America Corp (NYSE: BAC) traded up 0.04% on Monday hitting $13.23 during mid-day trading.
